Asked by
Destini Alford
on Nov 27, 2024
Verified
In the event that there is a conflicting, superior claim to an instrument, a holder in due course will not be able to collect payment.
Holder in Due Course
This is a legal term for an individual or entity that has acquired a negotiable instrument in good faith and for value, thus having certain protections against defenses and claims in disputes over its payment.
Conflicting Claim
A situation where two or more parties assert rights or entitlements that are incompatible with one another.
Instrument
A formal written legal document, such as a contract, will, or deed, that formally records the details of a transaction or agreement.
- Familiarize oneself with the specific conditions that qualify an individual as a holder in due course (HDC) and the consequent security measures granted.
Verified Answer
GL
Learning Objectives
- Familiarize oneself with the specific conditions that qualify an individual as a holder in due course (HDC) and the consequent security measures granted.